Payroll

Choose your scenario

Employees who combine payroll processing with other functions

In-house payroll manager

Payroll is already outsourced

6 Reasonable

Grounds for Payroll Outsourcing Services

1

If Payroll

Takes up a minimum of 20% of your time (or some of your colleagues combine their main function with payroll and are making some mistakes and investing more time and effort than a professional payroll manager)

2

If you have a lot of

If you think that

It is not time-consuming or difficult but you still have less time for more important company business (tax optimisation, expense analysis); and that you have regular overtime and closing of reporting is always conducted 'on the last day'

4

If you are not satisfied with

your current employees' qualification ( for example, the presence of mistakes in calculation; failed deadlines to submit reporting; issues with the Pension Fund, the Social Insurance Fund or the Tax Authority; insufficient knowledge of payroll software)

5

If an employee is leaving

while there is no other responsible person, and you consider the possibility to engage with an payroll companies to close the period

6

If Company payroll requirements

have increased (the business structure has been modified, business processes and the payment system have been changed, automation is being integrated) which requires involvement of more competent experts

Payroll/tax computation issues

by in-house specialists

Payroll is considered to be performed by any experienced accountant. However, the reality is that every second case is an issue.

50% of cases shows incorrect payroll taxes computation (due to ignorance of tax legislation or poor understanding of its usage in specific cases)

Consequences:

Underpayment/overpayment of salary

Underpayment/overpayment of payroll taxes as per employee(s)

Incorrect payroll calculation (in favour of the employee) leads to unreasonable understatement of CIT; the Company has to submit revised tax declaration or wait for additional tax assessment, penalties issued during the audit

You won't have this with us because:

Payroll services is not our additional but main function, we always have time to analyse and check calculated data

To reveal any inconsistencies we implemented a number of review procedures and subsequently we request information for a correct payroll calculation (our calculations are correct the very first time)

We have extensive expertise in tax legislation and we know how to handle disputable situations or how to make payroll tax debt relief /avoid underpayment of taxes

Main problems:

During the payroll processing other payments to employees may be missed out (travel allowance and other imprest amounts, loans, etc.)

Payroll taxes were paid but the money didn't reach the beneficiary (due to a mistake in bank details or outdated bank details which are changed quite regularly)

Filling in payment orders the specific rules of rounding off the payable tax amounts (unlike arithmetic rules) are breached

Consequences:

Underpayment/overpayment to employee(s); in case of overpayment it's impossible to return the Company money which results in a loss

Tax due can cause:

security hold (including charge of a penalty)

direct debit (collection)

problems during accounting filing

If money was paid to the wrong bank details, it can take up to six months to return it (the current debt has to be paid by taking the amount from current assets)

You won't have this with us because:

Our payroll manager use special checklists for all payment types ( in order to not miss anything)

As Tax Authorities change bank details on a regular basis, we assigned a special person who is responsible for a monthly verification of bank details of these Tax Authorities prior to paying tax

WiseAdvice offers a methodologist who monitors the changes in the legislation. Thus, our clients are aware of the correct amount of taxes payable (based on the correct rounding)

Main problem:

Incorrect or incomplete personal data are entered in to the accounting software

Employees responsible for report submission (whose main function is not payroll preparation) don't always follow the changes in preparation and filing of reporting

Consequences:

The preparation of reporting contains mistakes; the reporting is not timely submitted; the preparation of reporting requires more time and effort than a professional payroll specialist would take

The penalty for late submission of personal data reporting to the Pension Fund is 20% of the taxes paid

You won't have this with us because:

We see the preparation and submission of personal data reporting as a project we have to be ready for in advance. All stages of this project are monitored in terms of completeness of information ensuring that nothing is forgotten (as we know that sometimes there is no time to change the situation – e.g. to obtain a pension insurance certificate)

Having an extensive expertise in payroll preparation, we are well aware of the possible issues arising and improve control in all problematic areas

We upgraded our payroll system having automated all review procedures of data entry. If data is entered incorrectly or incompletely, the work is disabled until the mistake is corrected.

As we specialise inpayroll outsourcing services, we are always aware of all changes, instructions and we know what to do in abnormal situations thanks to our diverse expertise.

Special Payroll Offer!

Free payroll re-calculation as of any quarter

Should you have any doubt concerning the correct calculation of payroll and payroll taxes or you need to be sure that everything is correct, feel free to contact us. Payroll re-calculation will be performed free of charge for you. Thus you will be able to not only change the situation in a timely manner but also make a decision to payroll outsourcing services having actual facts and figures

In 85% of cases there are issues and it’s better to know about them.

Advantages for Chief Accountants

when Payroll is outsourced

Outsource your routine function to us (90% of accountants deal with payroll preparation out of necessity and they would be glad to delegate it)

Your valuable time and resources are saved for something more important and interesting

You are free from personal and professional liability for the quality and result (now we are responsible for that)

No HR matters (to employ, teach an employee how to prepare payroll, to replace this employee during their vacation or sick leave, etc.)

No need to monitor your employee’s work

Advantages of Payroll outsourcing for Company

or how to convince General Director

Important: the Company receives an excellent alternative of the current payroll situation for a reasonable price

Payroll is performed in an attentive and professional way

which guarantees an accurate and timely prepared reporting, the absence of underpayment/overpayment to employees and budget

Chief Accountant is free for more important matters

Control and mitigation of tax risks for the company, increase of tax security

Organisation and control of accounting processes in the company, etc.

Tax risk mitigation

Thanks to high organisation of payroll preparation, taxation and submission of reporting (thus minimising payroll tax debt relief, additional tax charges, penalties, late payment charges, security hold, etc. as well as less control by tax authorities)

Absolute confidentiality

No disclosure of employees’ salaries including those of managers

Cost saving

Tax losses are decreasing as we always look for a safe minimisation of payroll taxes and CIT

It is possible to terminate the service of 1C: Salary and Personnel Management software

Financial liability is shifted

If we ever make any mistakes, we will compensate the loss fully at our own expense (guaranteed by Insurance Policy in the amount of 30 million Rubles)

High reputation of the Company

Obligations towards employees are carried out in a full and timely manner and payroll are made clearly and independently

Important: the Company receives an excellent alternative of the current payroll situation for a reasonable price

Preparation

of all kinds of payroll reporting to the Tax Authority, PFRF, SIF (including e-filing)

Control

Quarterly reconciliation with extra-budgetary funds

Regular control of reciprocal payments with tax authorities to ensure the absence of claims from government agencies

ОTimely control of feedback from tax authorities via electronic accounting filing (prior to emails of inquiry from the Tax Authority)

Consulting

Clarifications on previously made calculations

Written clarifications of legal requirements concerning payroll and taxes as well as corresponding document flow

Unlimited verbal consultation on labour legislation

Interaction with state authorities

Refunding of paid out sick leave allowances from the Social Insurance Fund

Interaction with tax authorities and extra-budgetary funds in case of any issues with your reporting

Values for our Clients

1

«1С: Salary and Personnel Management» software

We use universal and generally recognised software «1С: Salary and Personnel Management». It allows for receiving services without any additional costs followed by full succession upon the termination of our services (you won't rely on an outsourcing company)

2

Remote access in common database

We offer a remote access to the database where the payroll is calculated. It's important if you prefer to keep staff records yourself. Teamwork in the common database excludes the duplication of functions and simplifies data exchange.

3

Material Accountability

Our professional liability is insured to the amount of 30 million Rubles, by one of Russia's largest insurance companies. We have an exclusive insurance contract, which had been being developed for the benefit of our clients.

In case we are liable for any additional tax charges on CIT, penalties, late payment charges, etc., we will not only fully compensate the loss but also correct the mistakes free of charge (unlike in-house accountant working under the Labour Code and not the Civil one).

Moreover, we are financially liable within 3 years upon accounting filing for the corresponding period even if the contract is terminated.

6 reasons for Payroll Outsourcing

1

You experience an employee turnover in Payroll Area (and you have to spend time on hiring, training and adaptation of new employees)

2

If you are not satisfied with your current employees' qualification (the presence of mistakes in reports; failed deadlines to submit reporting; issues with the Pension Fund, Social Insurance Fund or Tax Authority; insufficient knowledge of payroll software)

3

Employees' attitude towards work has changed (no complaints but the attitude towards their responsibilities became worse)

4

If an employee is temporarily unable to perform their duties (maternity or sick leave, etc.) but you would like to save their position and find the solution of this situation for the period of 6 months up to one year.

5

If an employee is leaving While there is no other responsible person, and you consider а possibility to engage with an accounting company to close the period

6

If company payroll requirements Have increased (the business structure has been modified, business processes and payment system have been changed, automation is being integrated) which requires more competent experts

Trust but verify!

Hiring a payroll manager is supposed to employ not just the performer but a competent person bearing a professional liability:

Performs their duties in an excellent manner

Analyses the problems preventing them from finishing the work in time

Inform the Accounting Department about any issues

Contributes suggestions on how to improve the situation or change business processes

Takes responsibility for the company (searches for the methods to decrease the amount of taxes from the employees' payments; suggests the options with possible risks)

Unfortunately, in most situations this is not the case. It leads to serious problems which are not realised or delivered to the managers and as a result not dealt with.

50% of cases shows incorrect payroll taxes computation (due to ignorance of tax legislation or poor understanding of its usage in specific cases)

Consequences:

Underpayment/overpayment of salary

Underpayment/overpayment of payroll taxes as per employee(s)

Incorrect payroll calculation (in favour of the employee) leads to unreasonable understatement of CIT; the Company has to submit revised tax declaration or wait for additional tax assessment, penalties issued during the audit

You won't have this with us because:

Payroll services is not our additional but main function, we always have time to analyse and check calculated data

To reveal any inconsistencies we implemented a number of review procedures and subsequently we request information for a correct payroll calculation (our calculations are correct the very first time)

We have extensive expertise in tax legislation and we know how to handle disputable situations or how to make payroll tax debt relief /avoid underpayment of taxes

Main problems:

During the payroll processing other payments to employees may be missed out (travel allowance and other imprest amounts, loans, etc.)

Payroll taxes were paid but the money didn't reach the beneficiary (due to a mistake in bank details or outdated bank details which are changed quite regularly)

Filling in payment orders the specific rules of rounding off the payable tax amounts (unlike arithmetic rules) are breached

Consequences:

Underpayment/overpayment to employee(s); in case of overpayment it's impossible to return the Company money which results in a loss

Tax due can cause:

security hold (including charge of a penalty)

direct debit (collection)

problems during accounting filing

If money was paid to the wrong bank details, it can take up to six months to return it (the current debt has to be paid by taking the amount from current assets)

You won't have this with us because:

Our payroll manager use special checklists for all payment types ( in order to not miss anything)

As Tax Authorities change bank details on a regular basis, we assigned a special person who is responsible for a monthly verification of bank details of these Tax Authorities prior to paying tax

WiseAdvice offers a methodologist who monitors the changes in the legislation. Thus, our clients are aware of the correct amount of taxes payable (based on the correct rounding)

Main problem:

Incorrect or incomplete personal data are entered in to the accounting software

Employees responsible for report submission (whose main function is not payroll preparation) don't always follow the changes in preparation and filing of reporting

Consequences:

The preparation of reporting contains mistakes; the reporting is not timely submitted; the preparation of reporting requires more time and effort than a professional payroll specialist would take

The penalty for late submission of personal data reporting to the Pension Fund is 20% of the taxes paid

You won't have this with us because:

We see the preparation and submission of personal data reporting as a project we have to be ready for in advance. All stages of this project are monitored in terms of completeness of information ensuring that nothing is forgotten (as we know that sometimes there is no time to change the situation – e.g. to obtain a pension insurance certificate)

Having an extensive expertise in payroll preparation, we are well aware of the possible issues arising and improve control in all problematic areas

We upgraded our payroll system having automated all review procedures of data entry. If data is entered incorrectly or incompletely, the work is disabled until the mistake is corrected.

As we specialise inpayroll outsourcing services, we are always aware of all changes, instructions and we know what to do in abnormal situations thanks to our diverse expertise.

Special Offer!

Free payroll re-calculation as of any quarter

Should you have any doubt concerning the correct calculation of payroll and taxes or you need to be sure that everything is correct, feel free to contact us. Payroll re-calculation will be performed free of charge for you. Thus you will be able to not only change the situation in a timely manner but also make a decision to outsource accounting functions having actual facts and figures

In 85% of cases there are issues and it’s better to know about them.

Advantages of Payroll Outsourcing Services

for Chief Accountant

Outsource your routine function to us (90% of accountants deal with payroll accounting out of necessity and they would be glad to delegate it)

Your valuable time and resources are saved for something more important and interesting

You are free from personal and professional liability for the quality and result (now we are responsible for that)

No HR matters (to employ, teach an employee how to prepare payroll, to replace this employee during their vacation or sick leave, etc.)

No need to monitor your employee's work

In other words, you receive a whole team of payroll managers responsible for their own area.

Set up

Set up

Day-to-day service procedures

What we do:

review current pay system and taxation

analyse sources of information and documents, necessary for payroll and responsible persons;

study current automation procedures and their installations;

offer a model of optimal business-procedures, including upgrading of software products;

specify all communication procedures (fix in written form all the documents and sources of information, work-flow of documents, responsible persons, deadlines)

work out controlling procedures;

support data exchange between accounting and payroll system

What we do:

Professionally payroll services in accordance with work standards pointed out

Analyse any cases and difficulties which could appear when collecting relevant information and documents

Hold meetings together with Chief Accountant to discuss possible solutions of actual problems (offer the ways to improve situation/modify business-procedures)

Advantages of Outsourcing for Company

Important: the Company receives an excellent alternative of the current situation for a reasonable price

Payroll is performed in an attentive and professional way

which guarantees an accurate and timely prepared reporting, the absence of underpayment/overpayment to employees and budget

Chief Accountant is free for more important matters

Control and mitigation of tax risks for the company, increase of tax security

Organisation and control of accounting processes in the company, etc.

Tax risk mitigation

Thanks to high organisation of payroll preparation, taxation and submission of reporting (thus minimising the probability of tax liabilities, additional tax charges, penalties, late payment charges, security hold, etc. as well as less control by tax authorities)

Absolute confidentiality

No disclosure of employees’ salaries including those of managers

Cost saving

Tax losses are decreasing as we always look for a safe minimisation of payroll taxes and CIT

It is possible to terminate the service of 1C: Salary and Personnel Management software

Financial liability is shifted

If we ever make any mistakes, we will compensate the loss fully at our own expense (guaranteed by Insurance Policy in the amount of 30 million Rubles)

High reputation of the Company

Obligations towards employees are carried out in a full and timely manner and payments are made clearly and independently

Important: the Company receives an excellent alternative of the current situation for a reasonable price

Preparation

of all kinds of payroll reporting to the Tax Authority, PFRF, SIF (including e-filing)

Control

Quarterly reconciliation with extra-budgetary funds

Regular control of reciprocal payments with tax authorities to ensure the absence of claims from government agencies

Timely control of feedback from tax authorities via electronic accounting filing (prior to emails of inquiry from the Tax Authority)

Consulting

Clarifications on previously made calculations

Written clarifications of legal requirements concerning payroll and taxes as well as corresponding document flow

Unlimited verbal consultation on labour legislation

Interaction with state authorities

Refunding of paid out sick leave allowances from the Social Insurance Fund

Interaction with tax authorities and extra-budgetary funds in case of any issues with your reporting

Values for our Clients

1

«1С: Salary and Personnel Management» software

We use universal and generally recognised software «1С: Salary and Personnel Management». It allows for receiving services without any additional costs followed by full succession upon the termination of our services (you won't rely on an outsourcing company)

2

Remote access in common database

We offer a remote access to the database where the payroll is calculated. It's important if you prefer to keep staff records yourself. Teamwork in the common database excludes the duplication of functions and simplifies data exchange.

3

Material Accountability

Our professional liability is insured to the amount of 30 million Rubles, by one of Russia's largest insurance companies. We have an exclusive insurance contract, which had been being developed for the benefit of our clients.

In case we are liable for any additional tax charges on CIT, penalties, late payment charges, etc., we will not only fully compensate the loss but also correct the mistakes free of charge (unlike in-house accountant working under the Labour Code and not the Civil one).

Moreover, we are financially liable within 3 years upon accounting filing for the corresponding period even if the contract is terminated.

6 reasons for

changing the payroll company

1

You are not satisfied with the quality or the cost of services delivered by the Provider, still the payroll services organization by the Accounting Department is not possible

2

Payroll and taxes were transferred to the wrong bank details or had an incorrect amount

3

Payroll is prepared in non-standard payroll system resulting in difficulties connected with changing the Provider (you have to rely on your current Provider)

4

Provider's attitude: 'it's not our area of responsibility' which means that the payroll company isn't proactive (no analysis of arising issues, no suggestions on improving the situation, no options of how to reduce taxes as per different payments to employees, etc.)

5

There are too many contact persons of the Provider and/or they are changed on a regular basis. Thus it takes a lot of time to communicate, involve new persons in the current matters instead of improving the situation

6

If Company payroll requirements have increased (the business structure has been modified, business processes and payment system have been changed, automation is being integrated) which requires more competent experts

Check the quality! Compare the prices!

Should you have any doubt concerning the correct calculation of payroll accounting and payroll taxes or you need to be sure that everything is alright, feel free to contact us.

We offer a payroll re-calculation as of ANY QUARTER performed FREE OF CHARGE

An alternative commercial offer will be presented to you to prove that our cost of service is 30% less of average prices.

You can make a decision to change your Provider having actual facts and figures.

Why should you check your current Provider?

25%

of cases show incorrect payroll (due to non-compliance or poor knowledge of payroll accounting methods as per different types of payment).

Up to 5%

of labour compensation fund - the amount of common deviation during the payroll accounting (not in the employee’s favour)

Consequences:

Underpayment/overpayment to employee(s); in the case of overpayment it’s impossible to return the Company money which actually means loss

Underpayment/overpayment of payroll taxes as per employee(s)

Incorrect payroll calculation (in favour of employee) leads to unreasonable understatement of CIT; the Company has to submit revised tax declaration or wait for additional tax assessment, penalties issued during the audit

The Company reputation is at risk in case the employees are underpaid.

How does it work? Feel the difference!

Each company has its individual approach to service they provide. If you have already outsourced the payroll services – we would like to represent you the way service would be organised in WiseAdvice.

Set up

Set up

Day-to-day service procedures

Prevention of Possible Issues

We always run the payroll as methodologists and coordinators.

What we do:

review current pay system and taxation

analyse sources of information and documents, necessary for salary calculation, and responsible persons;

study current automation procedures and their installations;

offer a model of optimal business-procedures, including upgrading of software products;

specify all communication procedures (fix in written form all the documents and sources of information, work-flow of documents, responsible persons, deadlines)

work out controlling procedures;

support data exchange between accounting and payroll system

Who provides the service:

Head of Payroll Department

Project Expert

Payroll Methodologist

Tax Audit Advisor

Employment and Labour Law Advisor

1C Programming Analytics

What we do:

Professionally calculate salary in accordance with work standards pointed out

Analyse any cases and difficulties which could appear when collecting relevant information and documents

Hold meetings with the Chief Accountant to discuss possible solutions of actual problems (offer the ways to improve situation/modify business-procedures)

Possible issues:

Not all types of payment are taken into payroll accounting (or in an untimely manner)

The amount of taxes payable are calculated more than required;

Unreasonable understatement of profit tax

You won't have this with us because:

Our experts use analysis and checking procedures

To reveal any inconsistencies we implemented a number of review procedures and subsequently we request information for a correct calculation

Our payroll experts use special checklists for all payment types (not to miss anything)

We have extensive expertise in tax legislation and we know what to do in disputable situations or how to minimise/avoid underpayment of taxes

Stage 2. Payoff / tax payment

Possible issues:

Salary or tax Payments are made to the wrong bank details

You won't have this with us because:

Monitor current bank details

We perform a regular reconciliation with the Tax Authority and extra-budgetary funds to ensure the absence of liability

Stage 3. Accounting filing

Possible issues:

Incorrect or incomplete personal data are entered into the payroll system causing a risk of a late accounting filing (and that is 20% of the taxes paid)

You won't have this with us because:

We see the preparation and submission of personal data reporting as a project we have to be ready for in advance. All stages of this project are monitored in terms of completeness of information ensuring that nothing is forgotten (as we know that sometimes there is no time to change the situation – e.g. to obtain a pension insurance certificate)

We upgraded our accounting software having automated all review procedures of data entry. If data are entered incorrectly or incompletely, the work is disabled until the mistake is corrected.

Qui identifie les problèmes:

l'expert en calcul de salaire

Qui les analyse et donne une décision:

le chef du Service de masse salariale

le chef de projet

l'expert en calcul de salaire

le conseiller et vérificateur en fiscalité

Qui aide dans la décision:

les programmeurs et analystes 1C

Why is it such a pleasure to work with us?

1

Attractive cost

We will find the best solution to optimise your budget keeping or even improving the quality of our services.

2

Proactive position

We put heart and soul in our work. WiseAdvice is always an initiative partner willing to analyse arising issues, come up with good solutions and improve the company service.

3

«1С: Salary and Personnel Management» software

We use universal and generally recognised software «1С: Salary and Personnel Management». It allows for receiving services without any additional costs followed by full succession upon the termination of our services (you won't rely on an outsourcing company)

4

Remote access in common database

We offer a remote access to the database where the payroll is calculated. It's important if you prefer to keep staff records yourself. Teamwork in the common database excludes the duplication of functions and simplifies data exchange.

5

Careful attitude towards Company finance

Thanks to high organisation of payroll preparation, taxation and submission of reporting (thus minimising the probability of tax liabilities, additional tax charges, penalties, late payment charges, security hold, etc. as well as less control by tax authorities)

Non-effective payments to employees (due to which the Company incurs unreasonable expenses) are optimised

Tax losses are decreasing as we always look for a safe minimisation of payroll taxes and CIT

6

Material Accountability

Our professional liability is insured to the amount of 30 million Rubles, by one of Russia's largest insurance companies. We have an exclusive insurance contract, which had been being developed for the benefit of our clients.

In case we are liable for any additional tax charges on CIT, penalties, late payment charges, etc., we will not only fully compensate the loss but also correct the mistakes free of charge (unlike in-house accountant working under the Labour Code and not the Civil one).

Moreover, we are financially liable within 3 years upon accounting filing for the corresponding period even if the contract is terminated.

258 …and about our clients

If you are interested in companies of a particular kind and range of business activity or with specific characteristics, we are glad to provide contact details for you to receive recommendation on the quality of our services.

Be informed that some of recommendation letters were received for 'INTELIS – audit', LLC which was rebranded into 'WiseAdvice' in 2010.

A few words about us...

The WiseAdvice consulting group provides more than 50 kinds of business services (from Legal to IT).

The Group employs more than 200 staff.

Clients of the WiseAdvice group of companies include over 5,000 Russian and foreign companies active in a variety of sectors.

We are among the 40 largest consulting companies in Russia.

We rank 18th amongst accounting outsourcing firms.

We occupy 5th place in the category "Outsourcing of accounting and tax accounting"

We are a certified partner of 1C under the project "1C: Rent." All the necessary licenses (both for application solutions and client-server) are officially acquired by us, and they entitle us to provide the software to third parties.

We are a certified partner of Microsoft. The Services Provider License Agreement (SPLA) enables us to formally provide Microsoft products to customers.

Our services are certified according to international quality standard ISO 9001:2008.